The use of indicators in Forex trading at some point has become very popular, since many novice traders consider certain indicators to be a reliable indicator of market movement and, as a result, an impressive profit.
In fact, no indicator by itself allows you to determine the direction of the trend movement, support and resistance levels, possible pivot points and all the other information needed to open a profitable position with a high probability.
At the same time, the chart itself provides quite a lot of information in order to trade successfully on Forex, so today indicatorless trading is used with success by leading traders who manage to get stable profits.
Benefits of Indicatorless Trading
The main advantage of indicatorless trading is the ability to analyze the price charts of the actual situation that takes place in the market. At the same time, indicators are based on historical data, which in some cases significantly distorts the picture.
The non-indicator trading on Forex is built on the premise that the market is constantly in a trend movement, and there is a sideways movement (between the individual trends). It is during the flat, as a rule, that figures are formed that indicate a continuation of the trend or a likely change in the direction of price movement.
Patterns of continuation of the trend are ascending and descending triangle, pennant, flag and others used less frequently, and the most significant figures of trend change are the head and shoulders, multiple tops and multiple bases, and a failed swing.
Problems of non-indicator trading on Forex
One of the main problems of indicator-free trading on Forex are problems with the search for figures and their assessment. Often, the figures of the continuation of the trend or reversal of the market are simply not visible, or the traders find them where, in fact, there are simply no patterns.
In fact, the construction of figures is quite simple. For example, a triangle is created by a price chart between a trend line and a support or resistance level. The main principle of trade-free trade is to assess the trend or flat and the figures of the continuation of the trend or reversal. To do this, you can use different currency pairs and time frames. But to get excited and open positions in short time intervals, where the figure is not yet lined up or not at all – not right, such a strategy will lead to loss and make you lose faith in indicatorless trading on Forex.